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How do I start saving towards my future and further on to when I retire?

I'm looking far ahead into the future because I know what it's like to not have enough at a later age. I'm a full-time undergraduate student, and currently devoting all my time and effort into school, so I don't have enough time to spare for a part time job. However, what are some other ways to prepare for your future through saving money, and spending less? What are your opinions on bonds and investing? I'm worried I won't have enough money to support my family when I start one, or when I retire. savings

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Morgan’s Answer

Its never too early. Even if you are in your 20's and starting your career, if your company offers you a pension scheme then jump on it. The longer you wait the less you will have during your retirement. We are living longer, and when you retire at 65 you will have a number of years ahead of you to look forward to. Getting a jump start on that pension fund is the best thing you can do.


Most businesses will support you in financial investments and will have someone to talk to you about pensions. Talk to your parents or friends that are working, and get advice from them of firms in the area that they use for financial investments. Talk to your bank too about long term savings plans (usually they have a higher interest rate over a 5-7 year period to help you save towards your home deposit or your family).


Try to stay away from the stock market however as you could loose everything there.

Very interesting, thank you so much Morgan. I have been warned about the high risks of bonds and stocks, but if I wanted to know more about it, how can I go around doing it? Anudari A.
Get financial advice from someone local to you that has been recommended. If you are in college still, there might be a financial admin team on site that can give advice. Otherwise start having conversations with your bank manager about your plans and consider the next 5/10/20 years so layout where you want to be in that timeframe, and budget for it. Starting now will really help you. Morgan Bardon
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Alyssa’s Answer

A great place to start is a high yield savings account. These types of accounts will provide a better interest rate than a normal savings account. Another options is a CD (Certificate of Deposit). These usually have better interest rates than a normal savings account and have different required investment time frames (1 month, 3 months, 6 months, and so on). You can find these options at most banks (AMEX, Bank of America, Wells Fargo, etc). It's important to have enough in savings to cover your living expenses for 3-6 months if you were to lose your source of income.

Once you have that emergency money in place, then you can start thinking about investing for your future - 401k (for retirement), Roth IRA (for retirement), 529 College Savings (for your children), or an investment account (buying a house, car, etc). If you cannot resist the allure of the stock market - do NOT invest in a single company. It's best to buy a broadly diversified index mutual fund (for example a Russell 3000 index mutual fund) with a low expense ratio. If you do invest in the stock/bond market, plan to stay invested for at least 12 months so you don't have to pay short term capital gains taxes to Uncle Sam. If you hold it for longer than 12 months you will still pay taxes on your earnings, but it will be at the lower long term capital gains rate.

Alyssa recommends the following next steps:

Research high yield savings accounts
Research CDs
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Sam’s Answer

Assuming you have some savings, you can consider buying stocks, or save money to start a mortgage once you obtain your first job in buying a house or condo. Since you are young, you can take more risks than someone closer to retirement. In this case, you can put money in what people called "growth stocks". These are typically stocks that have a great idea, but not necessary making money, or small amount of profit. To learn more, you can listen to youtube video, for instance, https://www.youtube.com/channel/UCXQmW8voQFKh2L3bKCCeEHQ. An example is the electric vehicles sector. Within the sector, however, there are lot of stocks you can choose from. Therefore, it is rise to spend little time researching and understanding their financial circumstances. The other sector is artifical intelligence. The world will be lead by more automation and robots. Couple of examples in this space, AI, and FROG (stock symbol). China is one of the biggest and fastest growth over last few years. Therefore, you can invest some of these stocks. Cyptocurrencies are also one of the hot topics and area for investing, though it may contain higher risk and volatility. If you have some spare time, you can sell old items at Ebay. As a student, you may also be able to tutor other students for additional income. Hope this helps.
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